The latest report suggests that the IT services sector in India will witness an addition of over 4.5 lakh jobs in the second half of this financial year.
Higher Attrition In The Second Half
Basically, the industry will see higher attrition during the second half of the financial year around 17-19 percent, as per the report by market intelligence firm UnearthInsight.
However, there will be a net employee addition of around 1.75 lakh people during the same period.
More Employment In Second Half
The report suggests that the industry will see an addition of around 12 percent more employees in the second half of the year, compared to the first half.
The founder and CEO of UnearthInsight, Gaurav Vasu said, “The IT industry’s perceived ‘war on talent’ is real and it’s getting intense with attrition a rising concern for the industry. It’s crucial for the industry to focus on employee value proposition (EVP) even more aggressively to keep attrition in check,”.
IT Firms Developing Robust Infrastructure
According to Vasu, the top IT firms developed a robust infrastructure to support the initiatives on the digital format, delivering upskilling programs online, during the first half of the fiscal.
It seems that the freshers are in demand in this fiscal as the report said that nearly 2.50 lakh freshers have been hired by more than 30 IT services companies in India.
Moreover, India’s top five IT firms — Tata Consultancy Services (TCS), Infosys, Cognizant, HCL Technologies and Tech Mahindra — are likely to hire more than 2 lakh freshers.
Coming to attrition, in the second half, it is expected to be 17-19 percent of the last 12 months, which is expected to come down in the next fiscal to 16-18 percent.
This would happen due to the supply-side challenges that are currently driving attrition in the industry are expected to normalize in the next financial year.
With this drive, the cloud services will garner revenue of around $80-100 billion for the IT services industry by 2030, Unearthinsight said.
By 2030, the software product and platform business could generate $15-20 billion in revenues for top-tier IT services firms, according to Unearthinsight.
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